What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2025-11-03 · 83 added, 157 removed, 329 unchanged (42% of the section changed)

3 unchanged sentences

(in thousands, except share and per share amounts)

September 26,

2026 December 26,

43 unchanged sentences

(in thousands, except share and per share amounts)

Three Months Ended Nine Months Ended

September 26,

2025 September 27,

2024 September 26,

2025 September 27,

Three Months Ended

2026 March 28,

Net sales $ 256,068 $ 244,465

6 unchanged sentences

Total operating expenses 30,173 29,694

Operating loss ( 19,425 ) ( 385 ) ( 25,437 ) ( 6,388 )

Operating income (loss) 2,085 ( 1,172 )

Interest expense, net 1,678 1,646

Other expense, net 323 81

Loss before income taxes ( 22,170 ) ( 2,610 ) ( 31,737 ) ( 14,856 )

Income (loss) before income taxes 84 ( 2,899 )

Income tax expense 2,553 1,660

10 unchanged sentences

(in thousands, except share amounts)

For the nine months ending September 26, 2025 Ordinary Shares Additional

For the three months ended March 27, 2026 Ordinary Shares Additional

Capital Treasury Shares Retained

3 unchanged sentences

Balance at December 26, 2025 34,433,776 $ 3 $ 624,391 4,437,439 $ ( 91,578 ) $ 131,070 $ 663,886

Ordinary shares issued, net of transaction costs — — — — — — —

Ordinary shares issued from exercise of stock options 181,496 — 4,287 — — — 4,287

4 unchanged sentences

Balance at March 27, 2026 34,744,772 $ 3 $ 630,988 4,437,439 $ ( 91,578 ) $ 128,601 $ 668,014

Ordinary shares issued, net of transaction costs — — — — — — —

Ordinary shares issued from exercise of stock options — — — — — — —

Ordinary shares issued from vesting of restricted share units 130,079 — ( 1,033 ) — — — ( 1,033 )

Ordinary shares issued from employee share purchase plan — — — — — — —

Share-based compensation expense — — 4,227 — — — 4,227

Net loss — — — — — ( 9,408 ) ( 9,408 )

Balance at June 27, 2025 34,243,283 3 615,838 4,437,439 ( 91,578 ) 169,884 694,147

Ordinary shares issued, net of transaction costs — — — — — — —

Ordinary shares issued from exercise of stock options — — — — — — —

Ordinary shares issued from vesting of restricted share units 58,974 — ( 601 ) — — — ( 601 )

Ordinary shares issued from employee share purchase plan 75,634 — 1,263 — — — 1,263

Share-based compensation expense — — 4,221 — — — 4,221

Net loss — — — — — ( 22,853 ) ( 22,853 )

Balance at September 26, 2025 34,377,891 $ 3 $ 620,721 4,437,439 $ ( 91,578 ) $ 147,031 $ 676,177

The accompanying notes are an integral part of these consolidated financial statements.

ICHOR HOLDINGS, LTD.

Consolidated Statements of Shareholders’ Equity

(in thousands, except share amounts)

For the nine months ending September 27, 2024 Ordinary Shares Additional

For the three months ended March 28, 2025 Ordinary Shares Additional

Capital Treasury Shares Retained

3 unchanged sentences

Balance at December 27, 2024 33,859,542 $ 3 $ 606,060 4,437,439 $ ( 91,578 ) $ 183,851 $ 698,336

Ordinary shares issued, net of transaction costs 3,833,334 — 136,738 — — — 136,738

Ordinary shares issued from exercise of stock options 137,080 — 3,404 — — — 3,404

4 unchanged sentences

Balance at March 28, 2025 34,113,204 $ 3 $ 612,644 4,437,439 $ ( 91,578 ) $ 179,292 $ 700,361

Ordinary shares issued, net of transaction costs — — — — — — —

Ordinary shares issued from exercise of stock options 31,381 — 747 — — — 747

Ordinary shares issued from vesting of restricted share units 130,104 — ( 1,929 ) — — — ( 1,929 )

Ordinary shares issued from employee share purchase plan — — — — — — —

Share-based compensation expense — — 3,938 — — — 3,938

Net loss — — — — — ( 5,112 ) ( 5,112 )

Balance at June 28, 2024 33,629,331 3 595,881 4,437,439 ( 91,578 ) 190,570 694,876

Ordinary shares issued, net of transaction costs — — — — — — —

Ordinary shares issued from exercise of stock options 7,309 — 170 — — — 170

Ordinary shares issued from vesting of restricted share units 43,290 — ( 953 ) — — — ( 953 )

Ordinary shares issued from employee share purchase plan 44,987 — 1,286 — — — 1,286

Share-based compensation expense — — 4,672 — — — 4,672

Net loss — — — — — ( 2,776 ) ( 2,776 )

Balance at September 27, 2024 33,724,917 $ 3 $ 601,056 4,437,439 $ ( 91,578 ) $ 187,794 $ 697,275

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended

September 26,

2025 September 27,

Three Months Ended

2026 March 28,

Cash flows from operating activities:

Net loss $ ( 2,469 ) $ ( 4,559 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 7,654 8,058

Impairment of inventory 16,713 —

Share-based compensation 3,833 4,123

Impairment of lease right-of-use assets 1,651 —

Deferred income taxes 665 247

Loss on disposal of equipment 475 —

Amortization of debt issuance costs 78 116

Loss on extinguishment of debt 169 —

Changes in operating assets and liabilities, net of acquisitions:

5 unchanged sentences

Other liabilities 673 ( 1,364 )

Net cash provided by operating activities 20,716 30,368

Net cash provided by (used in) operating activities ( 2,917 ) 18,977

Cash flows from investing activities:

2 unchanged sentences

Cash flows from financing activities:

Issuance of ordinary shares, net of fees — 136,738

Issuance of ordinary shares under share-based compensation plans 4,766 4,004

Employees' taxes paid upon vesting of restricted share units ( 2,422 ) ( 2,013 )

Debt issuance and modification costs ( 1,215 ) —

Repayments on revolving credit facility — ( 115,000 )

Proceeds from term loan 57,003 —

Repayments on term loan ( 1,563 ) ( 1,875 )

Net cash provided by (used in) financing activities ( 3,965 ) 19,362

Net cash provided by financing activities 781 116

Net increase (decrease) in cash ( 9,201 ) 612

22 unchanged sentences

References to 2026 and 2025 relate to the fiscal years then ended, respectively.

The three-month periods ended September 26, 2025 and September 27, 2024 are each 13 weeks.

References to the third quarter of 2025 and 2024 relate to the three-month periods then ended, respectively .

The three-month periods ended March 27, 2026 and March 28, 2025 are each 13 weeks.

References to the first quarter of 2026 and 2025 relate to the three-month periods then ended, respectively .

Use of Estimates

3 unchanged sentences

Significant estimates include inventory valuation, uncertain tax positions, valuation allowance on deferred tax assets, and impairment analysis for both definite‑lived intangible assets and goodwill.

Change in Accounting Estimate

On March 29, 2025, we changed our accounting estimate for the expected useful lives of Computer Numerical Control ("CNC") machinery.

We evaluated our current asset base and reassessed the estimated useful lives of the CNC machinery in connection with our recent usage of older machinery, including considering the technological and physical obsolescence of such machinery.

Based on this evaluation, we determined the expected useful life of the CNC machinery should be increased from seven to ten years to more closely reflect the estimated economic life of those assets.

This change in estimate was applied prospectively effective for the second quarter of 2025 and resulted in a decrease to depreciation expense in cost of sales of $ 1.0 million for the second quarter of 2025.

For the three and nine months ended September 26, 2025, this change in estimate reduced Operating loss and Net loss by approximately $ 1.0 million and $ 2.0 million and Net loss per share by $ 0.03 and $ 0.06 , respectively.

Cash and Cash Equivalents

23 unchanged sentences

Accounting Pronouncements Recently Issued

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740).

This ASU is intended to enhance the transparency, decision usefulness, and effectiveness of income tax disclosures.

The ASU requires a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories.

The ASU also requires a public entity to provide a qualitative description of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state, and foreign taxes as well as by individual jurisdictions.

The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted.

We are currently evaluating the effect that the adoption of this ASU may have on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40).

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40) .

The ASU requires disaggregation of certain expense captions into specified natural expense categories in the disclosures within the notes to the financial statements.

5 unchanged sentences

Inventories consist of the following:

September 26,

2026 December 26,

7 unchanged sentences

Property and equipment consist of the following:

September 26,

2026 December 26,

8 unchanged sentences

Total property and equipment, net $ 103,551 $ 103,922

Depreciation expense was $ 4.9 million and $ 5.2 million for the third quarter of 2025 and 2024, respectively.

Depreciation expense was $ 15.9 million and $ 15.6 million for the nine months ended September 26, 2025 and September 27, 2024, respectively.

Depreciation expense was $ 5.1 million and $ 5.6 million for the first quarter of 2026 and 2025, respectively.

Cloud Computing Implementation Costs

2 unchanged sentences

To date, these costs have been those incurred to implement a new company-wide enterprise resource planning system.

The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $ 12.9 million and $ 11.2 million as of September 26, 2025 and December 27, 2024, respectively, and is included in other noncurrent assets on our consolidated balance sheets.

The related amortization expense, which is included in selling, general, and administrative expenses on our consolidated statements of operations, was $ 0.4 million and $ 0.3 million for the third quarter of 2025 and 2024, respectively, and $ 1.3 million and $ 0.8 million for the nine months ended September 26, 2025 and September 27, 2024, respectively.

The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $ 12.0 million and $ 12.4 million as of March 27, 2026 and December 26, 2025, respectively, and is included in other noncurrent assets on our consolidated balance sheets.

The related amortization expense, which is included in selling, general, and administrative expenses on our consolidated statements of operations, was $ 0.4 million and $ 0.4 million for the first quarter of 2026 and 2025, respectively .

Note 4 – Intangible Assets

Definite‑lived intangible assets consist of the following:

September 26, 2025

March 27, 2026

Gross value Accumulated

22 unchanged sentences

As these amounts are variable, they are not included in lease liabilities.

During the three and nine months ended September 26, 2025, we recorded $ 0.4 million and $ 1.7 million, respectively, in non-cash impairment charges from the abandonment of ROU lease assets in connection with our exit from our Scotland operations and our Consolidation Restructuring Plan (see Note 12).

The impairment charges are included in Selling, general, and administrative expenses within the accompanying consolidated statement of operations.

For the first quarter of 2026 and 2025, no impairment charges were recognized in connection with our ROU lease assets.

The components of lease expense are as follows:

Three Months Ended Nine Months Ended

September 26,

2025 September 27,

2024 September 26,

2025 September 27,

Three Months Ended

2026 March 28,

Operating lease cost $ 2,837 $ 2,745

Supplemental cash flow information related to leases is as follows:

Nine Months Ended

September 26,

2025 September 27,

Three Months Ended

2026 March 28,

Cash paid for amounts included in the measurement of lease liabilities:

1 unchanged sentence

Supplemental balance sheet information related to leases is as follows:

September 26,

2026 December 26,

1 unchanged sentence

Weighted-average discount rate of operating leases 5.0 % 4.9 %

Future minimum lease payments under non-cancelable leases are as follows as of September 26, 2025:

Future minimum lease payments under non-cancelable leases are as follows as of March 27, 2026:

2026, remaining $ 9,150

6 unchanged sentences

Note 6 – Income Taxes

On July 4, 2025, a budget and reconciliation package referred to as the One Big Beautiful Bill Act (“OBBBA”) was signed into law.

The OBBBA enacts significant changes to U.S.

tax and related laws, including, among other things, expensing of domestic research expenses, increasing the limit of the interest expense deduction to thirty percent of EBITDA, and one hundred percent bonus depreciation on eligible property acquired after January 19, 2025.

There was no material change to our effective income tax rate as a result of these changes for the period ending September 26, 2025.

Income tax information for the periods reported is as follows:

Three Months Ended Nine Months Ended

September 26,

2025 September 27,

2024 September 26,

2025 September 27,

Three Months Ended

2026 March 28,

Income tax expense $ 2,553 $ 1,660

Loss before income taxes $ ( 22,170 ) $ ( 2,610 ) $ ( 31,737 ) $ ( 14,856 )

Income (loss) before income taxes $ 84 $ ( 2,899 )

Effective income tax rate 3039.3 % ( 57.3 ) %

Our effective tax rate for the three and nine months ended September 26, 2025 differs from the statutory rate primarily due to taxes on foreign income that differs from the U.S.

tax rate, including an accrual for the Organization for Economic Co-operation and Development's Global Anti-Base Erosion Model Rules ("Pillar Two") taxes, the impact of stock option exercises, and the impact of a valuation allowance against U.S.

The increase in income tax expense from the first quarter of 2025 to the first quarter of 2026 was primarily due to taxes on foreign income that differs from the U.S.

tax rate, the ending of our tax holiday in Singapore on March 31, 2026, and the impact of a valuation allowance against U.S.

deferred tax assets.

Pillar Two taxes primarily impact our Singapore operations, wherein we were granted and currently participate in a tax holiday expiring in 2026.

The ending balance for the unrecognized tax benefits for uncertain tax positions was approximately $ 4.4 million as of September 26, 2025.

The ending balance of unrecognized tax benefits for uncertain tax positions was approximately $ 4.1 million as of March 27, 2026.

The related interest was insignificant, and the related penalties were $ 0.7 million.

The uncertain tax positions that are reasonably possible to decrease in the next twelve months are insignificant.

As of September 26, 2025, we were under examination by California tax authorities for fiscal years 2020-2022.

As of March 27, 2026, we were under examination by California tax authorities for fiscal years 2020-2022.

Note 7 – Employee Benefit Programs

2 unchanged sentences

Eligible employees receive a discretionary matching contribution equal to 50 % of a participant’s deferral, up to an annual matching maximum of 4 % of a participant’s annual compensation.

Matching contributions were $ 0.7 million and $ 0.6 million for the third quarter of 2025 and 2024, respectively, and $ 2.1 million and $ 2.0 million for the nine months ended September 26, 2025 and September 27, 2024, respectively .

Matching contributions were $ 0.8 million and $ 0.8 million for the first quarter of 2026 and 2025, respectively .

Note 8 – Long-Term Debt

Long‑term debt consists of the following:

September 26,

2026 December 26,

9 unchanged sentences

The revolving credit facility also contains a $ 20.0 million letter of credit sub-facility and a $ 10.0 million swingline sub-facility.

We incurred debt issuance costs of approximately $ 1.7 million in connection with the amendment and restatement.

Of this amount, $ 1.2 million of the debt issuance costs are accounted for as a reduction to the carrying value of our long-term debt, and we amortize the costs to interest expense over the term of the credit agreement.

The remaining $ 0.5 million was expensed as incurred, which is included in Other expense (income), net on our statements of operations.

Under the debt modification literature codified in ASC 470, a portion of the amendment and restatement was treated as an extinguishment.

Accordingly, $ 0.2 million of existing capitalized debt issuance costs were written off as a loss on extinguishment of debt, which is included in Other expense (income), net on our consolidated statements of operations.

Quarterly term loan principal payments of $ 1.6 million commence on December 31, 2025, and the amount of such quarterly term loan payments will increase to $ 2.3 million on September 30, 2028, and $ 3.1 million on September 30, 2029, respectively.

Quarterly term loan principal payments of $ 1.6 million commenced on December 31, 2025, and the amount of such quarterly term loan payments will increase to $ 2.3 million on September 30, 2028, and $ 3.1 million on September 30, 2029.

The credit agreement matures on September 26, 2030.

The credit agreement includes debt covenants, which contain certain financial thresholds, and place certain restrictions on the incurrence of debt, investments, and issuance of dividends.

We were in compliance as of September 26, 2025.

As of September 26, 2025, i nterest is charged at either the Base Rate or SOFR (as such terms are defined in the credit agreement) at our option, plus an applicable margin.

We were in compliance as of March 27, 2026 .

As of March 27, 2026, i nterest is charged at either the Base Rate or SOFR (as such terms are defined in the credit agreement) at our option, plus an applicable margin.

The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.50 %, or iii) SOFR plus 1.00 %.

3 unchanged sentences

SOFR interest payments are due on the last day of the applicable interest period, or quarterly for applicable interest periods longer than three months.

As of September 26, 2025, our credit facilities bore interest under the SOFR option at 6.41 %.

As of March 27, 2026, our credit facilities bore interest under the SOFR option at 5.92 %.

Note 9 – Share‑Based Compensation

10 unchanged sentences

Shares withheld are not reflected as an issuance of ordinary shares within our consolidated statements of shareholders’ equity, as the shares are never issued, and the associated tax payments are reflected as financing activities within our consolidated statements of cash flows.

Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $ 4.2 million and $ 4.7 million for the third quarter of 2025 and 2024, respectively, and $ 12.6 million and $ 11.0 million for the nine months ended September 26, 2025 and September 27, 2024, respectively.

Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $ 3.8 million and $ 4.1 million for the first quarter of 2026 and 2025, respectively.

Stock Options

8 unchanged sentences

Forfeited or expired — $ —

Outstanding, September 26, 2025 216,357 $ 24.03 0.9 years $ —

Exercisable, September 26, 2025 216,357 $ 24.03 0.9 years $ —

Outstanding, March 27, 2026 31,629 $ 26.64 1.0 years $ 588

Exercisable, March 27, 2026 31,629 $ 26.64 1.0 years $ 588

Restricted Share Units

9 unchanged sentences

Forfeited ( 59,680 ) ( 55,827 ) ( 43,210 ) $ 30.35

Unvested, September 26, 2025 1,160,292 200,530 206,201 $ 28.32

Unvested, March 27, 2026 1,143,488 195,161 161,912 $ 24.65

Employee Share Purchase Plan

2 unchanged sentences

Shares are purchased on the last day of the purchase period.

As of September 26, 2025, approximately 2.0 million ordinary shares remain available for purchase under the 2017 ESPP.

Note 10 – Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation:

Three Months Ended Nine Months Ended

September 26,

2025 September 27,

2024 September 26,

2025 September 27,

Net loss $ ( 22,853 ) $ ( 2,776 ) $ ( 36,820 ) $ ( 16,877 )

Basic weighted average ordinary shares outstanding 34,346,172 33,700,246 34,174,639 32,419,762

Dilutive effect of options — — — —

Dilutive effect of RSUs — — — —

Dilutive effect of ESPP — — — —

Diluted weighted average ordinary shares outstanding 34,346,172 33,700,246 34,174,639 32,419,762

Securities excluded from the calculation of diluted weighted average ordinary shares outstanding (1) 1,908,000 1,992,000 2,445,000 2,512,000

Net loss per share:

Basic $ ( 0.67 ) $ ( 0.08 ) $ ( 1.08 ) $ ( 0.52 )

Diluted $ ( 0.67 ) $ ( 0.08 ) $ ( 1.08 ) $ ( 0.52 )

(1) Represents potentially dilutive options and RSUs excluded from the calculation of diluted weighted average ordinary shares outstanding, because including them would have been antidilutive under the treasury stock method.

As of March 27, 2026, approximately 1.9 million ordinary shares remain available for purchase under the 2017 ESPP.

Note 10 – Segment Information

4 unchanged sentences

Our CODM is our Chief Executive Officer, and the CODM reviews and evaluates consolidated net income for purposes of assessing performance, making operating decisions, allocating resources, and planning and forecasting for future periods.

Foreign operations are conducted primarily through our wholly owned subsidiaries in Singapore, Malaysia and Mexico, and to a lesser degree, Scotland and Korea.

Foreign operations are conducted primarily through our wholly owned subsidiaries in Singapore, Malaysia, and Mexico.

Our principal markets include North America, Asia, and, to a lesser degree, Europe.

The following table sets forth sales by geographic area, which represents sales to unaffiliated customers based upon the location to which the products were shipped:

Three Months Ended Nine Months Ended

September 26,

2025 September 27,

2024 September 26,

2025 September 27,

Three Months Ended

2026 March 28,

Singapore $ 128,838 $ 109,088

3 unchanged sentences

Total net sales $ 256,068 $ 244,465

Foreign long-lived assets, exclusive of deferred tax assets, were $ 72.3 million and $ 62.5 million as of September 26, 2025 and December 27, 2024, respectively .

Foreign long-lived assets, exclusive of deferred tax assets, were $ 75.1 million and $ 71.3 million as of March 27, 2026 and December 26, 2025, respectively .

Note 11 – Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation:

Three Months Ended

2026 March 28,

Net loss $ ( 2,469 ) $ ( 4,559 )

Basic weighted average ordinary shares outstanding 34,607,033 33,998,364

Dilutive effect of options — —

Dilutive effect of RSUs — —

Dilutive effect of ESPP — —

Diluted weighted average ordinary shares outstanding 34,607,033 33,998,364

Securities excluded from the calculation of diluted weighted average ordinary shares outstanding (1) 1,998,000 1,783,000

Net loss per share:

Basic $ ( 0.07 ) $ ( 0.13 )

Diluted $ ( 0.07 ) $ ( 0.13 )

Note 12 - Restructuring

In the third quarter of 2025, our Board of Directors approved the Consolidation Restructuring Plan (the "Plan").

The Plan includes activities and plans to align our footprint in North America with our long-term strategic plan.

Key components of the Plan as of September 26, 2025 are as follows:

In the third quarter of 2025, our Board of Directors approved the Consolidation Restructuring Plan (the "Plan"), which was subsequently amended in the fourth quarter of 2025.

The Plan includes activities and plans to align our geographic footprint with our long-term strategic plan.

The amended restructuring plan expanded the scope of our initial plan to consolidate our footprint at additional sites.

Key components of the Plan as of March 27, 2026 are as follows:

Impairment of inventory

As of September 26, 2025, total expected inventory impairment costs under the Plan are $ 16.7 million, of which $ 16.7 million was recognized during the three months ended September 26, 2025 in Cost of sales in the consolidated statement of operations and as a contra-asset valuation account within Inventories on the consolidated balance sheet as of September 26, 2025.

As of March 27, 2026, total expected inventory impairment costs under the Plan are $ 19.8 million, all of which were recognized during 2025.

These costs were recognized within cost of sales on our consolidated statement of operations.

During the first quarter of 2026, we disposed of $ 11.5 million of impaired inventory.

The remaining inventory impairment costs of $ 8.3 million are accrued as a contra-asset valuation account within inventories on our consolidated balance sheet as of March 27, 2026.

Fixed asset charges

As of September 26, 2025, total expected fixed asset charges under the Plan are approximately $ 4.7 million, of which $ 0.5 million was recognized during the three months ended September 26, 2025 in Selling, general, and administrative expenses in the consolidated statement of operations.

As of March 27, 2026, total expected fixed asset charges under the Plan are approximately $ 5.4 million, of which $ 0.1 million were recognized during the first quarter of 2026 and $ 3.1 million were recognized during 2025.

These costs were recognized within selling, general, and administrative expenses on our consolidated statement of operations.

We expect to incur approximately an additional $ 2.2 million of fixed asset charges under the plan.

Impairment of operating right-of-use assets

As of September 26, 2025, total expected operating ROU asset impairment costs under the Plan are approximately $ 3.9 million, of which $ 0.4 million was recognized during the three months ended September 26, 2025 in Selling, general, and administrative expenses in the consolidated statement of operations.

We expect to incur approximately an additional $ 3.5 million of lease ROU asset impairment costs under the Plan.

We expect the Plan to be substantially complete by the end of 2026, which will likely result in additional expenses during the periods after September 26, 2025.

As of March 27, 2026, total expected operating lease ROU asset impairment charges under the Plan are approximately $ 1.8 million, of which $ 0.9 million were recognized during 2025.

These charges were recognized within selling, general, and administrative expenses on our consolidated statement of operations.

We expect to incur approximately an additional $ 0.9 million of operating lease ROU asset impairment charges under the Plan.

Severance charges

As of March 27, 2026, total expected severance charges under the Plan are approximately $ 1.7 million, all of which were recognized during 2025.

Of this amount recognized, $ 0.9 million and $ 0.8 million were recognized within cost of sales and selling, general, and administrative expenses, respectively, in 2025 on our consolidated statement of operations.

During the first quarter of 2026, we made severance payments of $ 0.9 million.

The remaining severance charges of $ 0.1 million are accrued within accrued liabilities on our consolidated balance sheet as of March 27, 2026.

Other costs include other direct and incremental costs incurred as result of the Plan, which primarily includes legal expenses, facility exit costs, and fixed asset transportation costs.

As of March 27, 2026, total expected other costs under the Plan are approximately $ 3.2 million, of which $ 0.4 million were recognized during the first quarter of 2026 and $ 1.3 million were recognized during 2025.

These costs were recognized within selling, general, and administrative expenses on our consolidated statement of operations.

We expect to incur approximately an additional $ 1.5 million of other costs under the Plan.

We expect the Plan to be substantially complete by the end of 2026.

We may incur additional expenses due to unanticipated events or changes in plan scope.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements